Chapter 1 Flashcards
situations in which the leader is the key force determining the organization’s success— or lack thereof.
romantic view of leadership
situations in which external forces—where the leader has limited influence—determine the organization’s success
external control view of leadership
the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
strategic management
The ideas, decisions, and actions that enable a firm to succeed.
strategy
A firm’s resources and capabilities that enable it to overcome the competitive forces in its industry(ies).
competitive advantage
performing similar activities better than rivals.
operational effectiveness
It is possible only by performing different activities from rivals or performing similar activities in different ways.
Sustainable competitive advantage
Key Attributes of Strategic Management
Directs the organization toward overall goals and objectives.
Includes multiple stakeholders in decision making.
Needs to incorporate short-term and long-term perspectives.
Recognizes trade-offs between efficiency and effectiveness.
individuals, groups, and organizations who have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, and the community at large.
stakeholders
tailoring actions to the needs of an organization rather than wasting effort, or “doing the right thing.”
effectiveness
performing actions at a low cost relative to a benchmark, or “doing things right.”
efficiency
managers must maintain both a vision for the future of the organization as well as a focus on its present operating needs.
creative tension
the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities.
ambidexterity
strategy analysis, strategy formulation, and strategy implementation
strategic management process
strategy in which organizational decisions are determined only by analysis.
intended strategy
strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences.
realized strategy
study of firms’ external and internal environments, and their fit with organizational vision and goals.
strategy analysis
decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage.
strategy formulation
actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership.
strategy implementation
the relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the board of directors.
corporate governance
a firm’s strategy for recognizing and responding to the interests of all its salient stakeholders.
stakeholder management
the various stakeholders compete for the organization’s resources: the gain of one individual or group is the loss of another individual or group.
zero sum
which recognizes that stakeholders are dependent upon each other for their success and well-being
stakeholder symbiosis
the expectation that businesses or individuals will strive to improve the overall welfare of society.
social responsibility
assessment of a firm’s financial, social, and environmental performance.
triple bottom line
organizational goals ranging from, at the top, those that are less specific yet able to evoke powerful and compelling mental images, to, at the bottom, those that are more specific and measurable.
hierarchy of goals
organizational goal(s) that evoke(s) powerful and compelling mental images.
vision
a set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage.
mission statement
A set of organizational goals that are used to operationalize the mission statement and that are specific and cover a welldefined time frame.
strategic objectives
.There must be at least one indicator (or yardstick) that measures progress against fulfilling the objective.
Measurable
This provides a clear message as to what needs to be accomplished.
Specific
It must be consistent with the organization’s vision and mission.
Appropriate
It must be an achievable target given the organization’s capabilities and opportunities in the environment. In essence, it must be challenging but doable.
Realistic
There must be a time frame for achieving the objective.
Timely.
